42 U.S.C. § 1320b–4 — Nonprofit hospital or critical access hospital philanthropy
submitted 91 years ago by Pub. L. 96-499 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 228 words · no verdicts yet
When calculating reasonable service costs for nonprofit hospitals and critical-access hospitals under Medicare and Medicaid, certain grants, gifts, endowment income, and capital-asset proceeds are not deducted from operating costs. The rule has a specific exception for depreciation recovery.
For calculating, under subchapters XVIII and XIX, the reasonable costs of services provided by a nonprofit hospital or critical-access hospital, these items are not deducted from operating costs:
(1) a grant, gift, endowment, or income from one, given to or for the hospital and not designated for a specific operating cost;
(2) a government grant or similar payment that its terms do not make available as operating funds;
(3) donor-designated grants and gifts, including government grants or similar payments, and their income, when the Secretary* decides encouraging them is in the best interests of needed health care; and
(4) proceeds from selling or mortgaging real estate or another capital asset acquired by gift or grant, when the gift or grant’s terms do not make the proceeds available as operating funds. Paragraph (4) does not apply to recovery of the proper share of depreciation when a depreciable asset is disposed of and a gain or loss is realized.
For purposes of determining, under subchapters XVIII and XIX of this chapter, the reasonable costs of services provided by nonprofit hospitals or critical access hospitals, the following items shall not be deducted from the operating costs of such hospitals or critical access hospitals:
A grant, gift, or endowment, or income therefrom, which is to or for such a hospital and which has not been designated by the donor for paying any specific operating costs.
A grant or similar payment which is to such a hospital, which was made by a governmental entity, and which is not available under the terms of the grant or payment for use as operating funds.
Those types of donor designated grants and gifts (including grants and similar payments which are made by a governmental entity), and income therefrom, which the Secretary* determines, in the best interests of needed health care, should be encouraged.
The proceeds from the sale or mortgage of any real estate or other capital asset of such a hospital, which real estate or asset the hospital acquired through gift or grant, if such proceeds are not available for use as operating funds under the terms of the gift or grant.
Paragraph (4) shall not apply to the recovery of the appropriate share of depreciation when gains or losses are realized from the disposal of depreciable assets.
Source credit: (Aug. 14, 1935, ch. 531, title XI, § 1134, as added Pub. L. 96–499, title IX, § 901(a), Dec. 5, 1980, 94 Stat. 2611; amended Pub. L. 97–35, title XXI, § 2193(c)(6), Aug. 13, 1981, 95 Stat. 827; Pub. L. 97–248, title I, § 137(b)(5), Sept. 3, 1982, 96 Stat. 377; Pub. L. 101–239, title VI, § 6003(g)(3)(D)(iii), Dec. 19, 1989, 103 Stat. 2153; Pub. L. 105–33, title IV, § 4201(c)(1), Aug. 5, 1997, 111 Stat. 373.)
- 1935Enacted · Pub. L. 96-499 · 94 Stat. 2611
- 1981Amended · Pub. L. 97-35 · 95 Stat. 827
- 1982Amended · Pub. L. 97-248 · 96 Stat. 377
- 1989Amended · Pub. L. 101-239 · 103 Stat. 2153
- 1997Amended · Pub. L. 105-33 · 111 Stat. 373
A history note hasn’t been published yet. The record shows enactment by Pub. L. 96-499 on 1935-08-14.
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